Poverty in post-communist countries decreased

The post-communist countries in Europe have made significant progress during the transition, but the inequality is continuing threat for the long-term development. Since the end of 1990 after the disintegration of the Soviet Union, the average income in the region of Central and Eastern Europe increased significantly and the poverty has decreased, but the problem appears in non-recognition of the benefits.

Although official data did not showed clear trend in recent years, the inequality remains at low level by international standards, but most of the people believe that it has even increased.

“The excessive concentration of wealth (among the richest) negatively affects the equal access to opportunities and provokes backlash against the key economic and political institutions”, says the report of European Bank for Reconstruction and Development (EBRD). “This might result in a slower growth in the long term. The shock of the transition and the uneven distribution of the benefits lead to anti-reformist positions, which ultimately leads to a threat to democracy”, adds the report.

The unequal distribution of opportunities also remains higher in Eastern Europe, than in Western European countries.

The European Bank for Reconstruction and Development was established in 1991 to invest in former Soviet countries in Central and Eastern Europe. The Bank has grown significantly over the last decade and now spends about 9 billion USD per year in 36 countries from Morocco to Mongolia.

Survey shows that so-called “Abyss of happiness” among the inhabitants of post-communist countries and European people finally closes, although this is due to a decrease in happiness in developed economies. The levels of satisfaction among residents of post-communist countries now are similar to those of Western residents and even higher than the proportion of the population of Cyprus, Greece and Turkey.